Patrick Industries announces rights offering

By Lisa Kerner

Charlotte, N.C., Sept. 18 - Patrick Industries, Inc. plans to conduct a $13.5 million rights offering, granting shareholders one right to purchase 0.2 of a share of common stock for each share they own at a purchase price of $11.25 per share.

The per-share price equals the price paid by Tontine Capital Partners, LP and Tontine Capital Overseas Master Fund, LP in Patrick's private placement of 980,000 shares. Patrick used the proceeds in part to fund its acquisition of Adorn Holdings, Inc. in May, according to a company news release.

In connection with the offering, Patrick entered into a standby purchase agreement with Tontine to purchase any shares that are unsubscribed at the close of the rights offering for $11.25 per share. Patrick shareholders will vote on the standby purchase agreement at a special meeting in late October.

Patrick intends to offer certain management employees the opportunity to purchase up to 130,000 shares of common stock at the same $11.25-per-share price, the release stated.

Proceeds from the sale of stock will be used to prepay the $13.98 million principal amount of 9½% senior subordinated promissory notes issued to Tontine.

Patrick Industries is an Elkhart, Ind., manufacturer of component products and a distributor of building products for the recreational vehicle, manufactured housing, kitchen cabinet, home and office furniture, fixture and commercial furnishings, marine and other industrial sectors.

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